Too Much Money, Too Few Deals in China

A secondary private-equity deal in China is highlighting how much money there is sloshing about in the country, but how few places there are to put it.

As the WSJ reports, three big private-equity funds in China—CDH Capital, Citic Private Equity and New Horizon Capital—are buying a stake of more than 50% in Singapore-listed Luye Pharma Group Ltd. People familiar with the deal said the seller, MBK partners, another fund, was letting it go at a significant premium.

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